Unlike any other card, credit cards are doing well in the market. It is an effective way to substitute our expenses. It is a bank instrument proven to help purchase commodities on a credit basis. However, credit card users are increasing rapidly, so scammers are finding a way to crack the system and try to swindle users. 

The goal is to steal credit card information and passcode. These credit card scams are increasing at an alarming rate. However, worldwide, people get overwhelmed by these frauds. Many of the users are aware of such cons. However, some people need clarification on these situations. Hence, this blog will help them know about various types of credit card frauds and to avoid red flag situations. 

Ways of stealing credit card information  

E-commerce has taken the whole spacious room to make work easy. But con artists are playing Hide ‘N Seek with the public. As a result, credit card users often need to pay more attention to one crucial aspect: keeping information safe and not clicking on unwanted links. 

These frauds are active for the general public and big business houses. Such thefts are normal but can trigger a person with a considerable loss. 

Lost or stolen cards

It functions without any tricks and defrauded attitude. If the card is lost or stolen, an unknown person collects it; can term as a fraudster or scammer. Although he cannot use it offline as it requires a PIN, they can use it for online purposes as all the required details are available. 

Breaching information 

In this type of credit card scam, the fraudster is trying to breach confidential information such as the cardholder’s name, credit card number, and expiry date. For them, it is like a treasure they can use to perform fraudulent activities via different platforms such as email, text, or social media. 

Skimmers

It is an illegal device that hunts all the information of a credit card user. All the data is captured from a magnetic strip attached to the device. The cybercriminals will then use it to counterfeit, fake, and rig cards. Shockingly, an average person will be unable to find a difference. If you see something abnormal, you should check it once with the experts. As it is a neat process, it is hard to tell whether the card is fake or real. 

Social Engineering

Here, the con artist tries to manipulate the bank by calling them resembling an account holder:

1. By wearing a fake personality, they will share all their information, including their last purchases, to ensure that Credit Card Company would believe them. This process is known as social engineering.
2. They will request the company to change the address, and lastly, they report that the card was lost or stolen to get free of their charges.
3. A new card is generated in the holder’s name and sent through an email. 

Account takeover 

It is dangerous if you are a potential victim of a scammer and he is constantly spying on you. They try to intercept the card if it is sent via the mailbox. 

Steps to note down to safeguard ourselves from credit card scams

There are several ways to attempt credit card scams. Hence, there are numerous other ways to protect ourselves. 

1. Credit monitoring services: 

You should start monitoring your credit card activities to avoid being a victim. First, you can take the help of your credit card company to check the transaction. Then, you can register to Financial Fund Recovery for any abnormality you have encountered. It is okay if you are checking weekly reports. 

1. Check bank statement:

It is as similar to credit monitoring services. Looking down at your bank statement as and when possible is essential. We all are busy in our lives; however, managing all our daily expenses becomes crucial. Many businesses should track their bank statement to catch some approximate number. If fraudsters trap you, you can immediately report it to the bank or your credit card company if the complaint is registered within 24 hours. All your transactions will be recovered, and the card will get blocked. 

1. Freeze your credit:

Some people freeze their credit card reports so no one can ask to open an account in their name; not even you. Till the time you don’t require a new account, it is a great approach. You can unfreeze the report anytime you want.

1. Notify me of credit purchase:

Many people gain an understanding of how these credit card scams work under their noses. It is the best way of setting alerts. Whenever any purchases take place, the cardholder should be updated.  

For example, your spouse and children often use your credit card. This notification system will help the account holder recognize and get confirmation on the update he receives. On the other hand, if an outsider uses it and makes the purchase, you can easily contact the bank and try to cancel the order. For security purposes, try to change the PIN.

1. Multi-factor authentication

In recent times, credit card frauds have been rapidly increasing. As a result, all users need to shield their credit cards with multi-factor authentication. Then, when you log in, you can get an OTP for further payments. It is a smart way of fooling fraudsters. 

Three steps to identify credit card scam

Credit card is a great help in society. Although it is a liability, it functions with EMI to avoid the burden. However, the card is offered in different money slabs. Many companies also opt for a credit card for company use, but somewhere-someone is always spying on them. Therefore, it is vital to secure the details. 

1. Many people save the details when asked, ‘remember me.’ In this condition, you put yourself at high risk. It is good to go if the website is popular and the sources are available online. But, on websites that are not that popular and where we cannot find information easily, avoid putting details there. Sometimes, fraudsters make their websites to gain authenticity.
2. Go for checking credit card statements and reports to understand if any unfamiliar activity has taken place. 
3. You can take support of credit monitoring services to avoid being a victim. 

The bottom line

Thank you for going through the blog! We appreciate your patience. As mentioned, we have put different aspects of fraud performances here. Also, provide tips for identification and protection. It is an awareness blog to introduce our readers to the dark world of fraudsters. We hope that you follow our tips and safeguard your interest.